ERGO and SIXT trial pay-as-you-drive coverage for fleet vehicles in Germany
ERGO and car rental company SIXT have signed a collaboration agreement covering 10,000 vehicles in the rental company’s fleet in Germany.
The companies are trialing a pay-as-you-drive pricing model in an attempt to reduce insurance costs. Under the new model, factors informing the calculation of the premiums include whether, when and how long a given car is rented out. In addition, a monthly evaluation will be performed to determine each vehicle’s actual risk situation based on recent usage. This data will then be used to calculate the insurance premiums for each individual vehicle and to update them on an ongoing basis.
The pilot was launched on September 1st. This collaboration is the first project ERGO and SIXT have undertaken together for the German market.
“Innovative mobility formats call for innovative product solutions. Our offer provides just that: a dynamic, pay-as-you-drive pricing model that is innovative, cost-effective and tailored to the mobility formats of tomorrow – whether that’s vehicle rental, sharing or subscription. With SIXT, we’re happy to have gained a partner that perfectly embodies the future of mobility.” – Karsten Crede, Board member of ERGO Digital Ventures AG .
“Innovation is in SIXT’s DNA, so we’re pleased to be working with ERGO on this groundbreaking project. Our first impressions from the partnership have been very positive.” – Ronny Krebs, EVP Global Business Services at SIXT.